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Withdrawing RRSP?

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  • Jul 4th, 2020 2:02 pm
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[OP]
Deal Addict
Dec 16, 2012
2506 posts
462 upvotes
Vancouver

Withdrawing RRSP?

Hi

When I cashed out my RRSPs to use under the First Time Homebuyer credit my bank charged me a fee to take out the money of like $25 what should have been taken from the balance. For whatever reason they never took the $25 off and left that amount in the RRSP Savings account, it's been in there for a long time now and I get every so often updates on how that account is doing or when terms change to that account.

I am just thinking of cashing it out and being done with that account. I know if I cash it out I will have to declare it as income, will the bank send me a statement at tax time to record it? Or do I have to declare it myself? I probably will just take the $25 and throw it in my QT account back as RRSPs.

I guess I could try to transfer it out directly to QT but it is such a low amount not even sure if it is worth going this route.
4 replies
Deal Addict
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May 11, 2014
4096 posts
4426 upvotes
Iqaluit, NU
Hey Xiaobao,

What bank is this? Some banks (Oaken and Achieva come to mind) transfer-out is free.
And many banks I've seen dont charge for withdrawals for HBP so that could be the case here.

Otherwise I would probably either just leave it or withdraw it. $25 lost contribution room and taxes on that income are nothing to cry about
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Sep 19, 2013
2355 posts
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Winnipeg
I would keep it, just to avoid the hassle of declaring income and the paperwork. Worry about it when you're 71.
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[OP]
Deal Addict
Dec 16, 2012
2506 posts
462 upvotes
Vancouver
xgbsSS wrote: Hey Xiaobao,

What bank is this? Some banks (Oaken and Achieva come to mind) transfer-out is free.
And many banks I've seen dont charge for withdrawals for HBP so that could be the case here.

Otherwise I would probably either just leave it or withdraw it. $25 lost contribution room and taxes on that income are nothing to cry about
No they made a mistake, as I remember the guy telling me that if I would have gone with them for a mortgage I would not be paying this fee. I am not too worried about the taxes on it or loss of room as it is so minor. I am just wondering how I have to declare it and such.
Mr Bean wrote: I would keep it, just to avoid the hassle of declaring income and the paperwork. Worry about it when you're 71.
Well I am phasing out that whole bank anyways so it will be alot sooner than 71 and right now I find it a hassle as they send me paperwork updates on it and stuff. Maybe I will put some money into it and just get QT to transfer it.
Deal Addict
User avatar
May 11, 2014
4096 posts
4426 upvotes
Iqaluit, NU
xiaobao wrote: No they made a mistake, as I remember the guy telling me that if I would have gone with them for a mortgage I would not be paying this fee. I am not too worried about the taxes on it or loss of room as it is so minor. I am just wondering how I have to declare it and such.
You will be issued a T4RSP receipt and then it is reported as income on your tax return. If you deposit enough with the account and transfer, you may be able to get Questrade to cover it. Whether it is worth the cost and time is up to you.
Support your local Credit Union!

Sask Pension Plan Upto $6300/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222

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